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Question

The adjustment entry to write off deferred revenue expenditure is?

Deferred Revenue Expenditure A/c
To Profit & Loss A/c
Dr.
Expense A/c
To Profit & Loss A/c
Dr.
Profit & Loss A/c
To Provision for Expense A/c
Dr.
Profit & Loss A/c
To Deferred Revenue Expenditure A/c
Dr.

A
A
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B
B
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C
C
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D
D
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Solution

The correct option is B D
A deferred expense is reported on the balance sheet as an asset until it expires. As it is expiring, it will be moving from the balance sheet to the income statement where it will be reported as an expense. The entries involving deferred expenses are called adjusting entries.
Adjusting entry to write off deferred revenue expenditure is -
Profit & Loss A/c Dr.
To Deferred Revenue Expenditure A/c

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